Possible bounce on Crude Oil after FED chair comments
The price of Crude oil (symbol ‘USOIL’) traded in a relatively steady decline in the last 3 months while positive Dollar news from last week like the exponentially better than expected NFP figure of 517 thousand against a consensus of 185 thousand, better job openings and also decreased unemployment created losses for oil. Oil is on the move to regain some losses following the restart of the Chinese trading activity on the 30th of January after China’s Lunar New Year .
‘Comments from the FED chair J.Powell were seen as less hawkish than feared boosting investors confidence making them more willing to possibly increase their risk appetite. A weaker U.S. currency makes oil cheaper for buyers holding other currencies. ’ said Antreas Themistokleous, market analyst in Exness ‘OPEC+ decided on an online meeting last week to keep the output limitations in place making the probability of the group sticking with current policy at its next meeting a very possible scenario.’
On the technical point of view the price found support on the lower band of the Bollinger bands around the $73,50 and is currently trading on a technical resistance level which is made up of the 38.2% of the Fibonacci retracement level and the 20 & 50 day moving averages.
If the bulls are strong on this swing we might possibly see the next level of resistance around the $81,50 price area which is just above the 100 day moving average and also the daily bearish trendline which is valid since early November.
In the event that the current resistance level proves to hold and the price makes a bearish move we might expect some support laying around the $75,50 which is a point just below the 23.6% of the Fibonacci.
‘Comments from the FED chair J.Powell were seen as less hawkish than feared boosting investors confidence making them more willing to possibly increase their risk appetite. A weaker U.S. currency makes oil cheaper for buyers holding other currencies. ’ said Antreas Themistokleous, market analyst in Exness ‘OPEC+ decided on an online meeting last week to keep the output limitations in place making the probability of the group sticking with current policy at its next meeting a very possible scenario.’
On the technical point of view the price found support on the lower band of the Bollinger bands around the $73,50 and is currently trading on a technical resistance level which is made up of the 38.2% of the Fibonacci retracement level and the 20 & 50 day moving averages.
If the bulls are strong on this swing we might possibly see the next level of resistance around the $81,50 price area which is just above the 100 day moving average and also the daily bearish trendline which is valid since early November.
In the event that the current resistance level proves to hold and the price makes a bearish move we might expect some support laying around the $75,50 which is a point just below the 23.6% of the Fibonacci.